State Assemblyman Anthony Chiappone has introduced a bill that would amend the New Jersey Law Against Discrimination (NJLAD) to bar employment discrimination based on an applicant’s or employee’s credit history or financial status.
The bill (A-3804) would make it illegal for employers to make credit inquiries about current or prospective employees unless other laws required them to.
In recent years, more employers have been using credit reports in the hiring process. Critics argue the practice keeps otherwise-qualified applicants from getting jobs because employers use credit checks when they are not relevant to the job in question. They also contend that credit checks may disparately impact women or minorities and potentially violate Title VII of the federal Civil Rights Act as well as the NJLAD.
Chiappone’s amendment would allow applicants and employees to sue employers whenever they run credit checks that aren’t specifically required by federal or state laws. The amendment will go to committee for hearings.
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